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How connected
cars are impacting
the car rental
industry

Thanks to advances like 5G, wireless automation and IoT, there are few industries untouched by digital transformation. However, it’s the car rental industry that might provide one of the most fascinating and innovative examples of how these technologies are revolutionizing the way business now operates.

Optimizing rentals with connected car solutions

Wireless automation, 5G and automotive IoT are all being used to create a suite of car rental solutions that optimize the entire process. The car rental industry is able to create unmanned, self-service auto rental lots that automate the process, allowing customers to get a rental when it’s most convenient for them without having to wait in line.

Meanwhile, connected cars keep the car rental industry in constant contact with their fleet to manage maintenance and track usage. This helps the rental company perform predictive maintenance to proactively fix issues before they lead to a breakdown on the side of the road, which can ruin both a family vacation and the rental company’s brand image.

With connected car solutions, the car rental industry can use a wireless, app-based system to improve the customer experience while controlling costs. Not only that, but the technology can be used to better understand customer needs so businesses can continue to send appropriate messages, such as discounts and offers that can help build loyalty.

The benefits of connected cars for the car rental industry

In operating your rental company, a connected car solution could offer you a number of benefits, including:

  • Simplified rental process: An app-based experience can help reduce all the paperwork and hassle of the traditional rental process, allowing customers to get their car faster.  This not only improves the customer experience but also helps you scale operations to handle a higher rental volume with the same level of staff.
  • Improved maintenance: Rather than track maintenance by a schedule, IoT and wireless automation allow you to track the performance of important vehicle systems in near real-time to predict maintenance needs based on usage and part performance. By knowing when a part is going to fail before it does so, you can replace it quickly and cheaply, rather than wait for it to break, which may then require an expensive repair. This could also help avoid a negative customer experience by reducing the likelihood of a rented car breaking down due to maintenance issues.
  • Smarter operations: By connecting your cars, you can gather valuable usage data that can help inform operations. This will allow you to do things like plan expansions into different cities, move your fleet closer to where your customers are, and partner with the fuel companies your customers use most. With this data, you can better compete against larger rental companies and vehicle-sharing options alike by creating a differentiated customer service experience.
  • Peace of mind: With connected cars, you can verify that cars are being used per your agreement with the customer. You can track your fleet to learn if your vehicles are taken out of a predefined geographic area, and understand if drivers speed excessively or drive a vehicle in a way that would lead to excessive wear and tear. If a vehicle is towed or stolen, you’ll be able to find it instantly, helping to protect your investment.

Connected car telematics solutions could help you enhance your fleet performance while improving the customer experience. The right service provider can help you execute your connected car strategy and enable more responsive customer service, more efficient operations, improved vehicle performance, and a greater return on your investment. Near-real time data analytics delivered via a 5G network can provide more insight and control, while increasing vehicle use and reducing operational costs.

Technology is enabling the car rental industry to revolutionize how business is done. Learn how Verizon’s Connected Fleet and Field Services can help your business get ahead.